With more structures and areas being created, the roofing sector is expanding.
From 2017 to 2025, the North American roofing business is expected to grow at a compound annual growth rate (CAGR) of 5.9% per year, reaching over $47.5 million in 2025.
You're interested in this industry, but you don't know where to start.
Roofs are needed for any structure to provide shelter and ensure structural integrity. The number of homes that are getting older and need repairs more often is also driving up the demand for roofing projects. If the work you generate meets the client's expectations, it is a reliable field. This blog will guide you on how to launch a roofing business.
Here, we talk about how to start a successful roofing business in ten steps and how much it will cost.
Here's a list of what you need to do to start a roofing business.
- Create a plan for your business
- Identify your target market
- Pick a name for the business and a legal structure
- Maintain legal compliance
- Open a bank account for your business
- Get the right equipment
- Use online applications
- Invest in insurance
- Hire the Right and Skillful Roofers
- Promote your business
Create a plan for your business
A roofing business must have a comprehensive business strategy to be successful. You need to include important information in your business plan, like what services you offer, who you want to sell to, and what kind of roofing you specialize in.
From the outset, you should have a clear vision for your business, which will help you stand out from the competition.
Choose where your storage space and office will be, as well as the boundaries of the area you will serve. Learn more about the direct and indirect rivals in the region. Observe the practices of successful roofing companies and discover what makes them successful.
As the owner of a roofing business, you should make a list of the things you need before you can start your business.
Identify your target market
You decide who you want to serve as a customer when creating a business strategy for your roofing company. At this point, you should spend some time identifying who your ideal client is in order to further tailor the services you offer to meet their needs.
First, you must decide if your roofing business will serve new business owners or homeowners. When it comes to managing commercial property, you need to figure out how many buildings you are willing and able to take care of.
You should think about whether your potential client can pay in cash or if they need a financial plan. You should also think about whether they can offer you payment plans.
Once you have narrowed down your audience, you can take it a step further by figuring out their job, age, income, gender, and other things that make each person in your target market unique.
As your business grows, it will be helpful to put all of this information into a report.
Pick a name for the business and a legal structure
Name your roofing business something distinctive and unique. It must be relevant to the services you provide. Create a roofing business entity that meets your requirements.
You have a number of options available:
- Sole Proprietor
- Ventures and Partnership
- Limited Liability Company (LLC)
LLCs can protect your assets and limit your liability if someone from the outside sues you. In addition, it offers taxation and operational structure flexibility.
Maintain legal compliance
Once you have chosen the name of your new roofing business, a legal entity needs to be created. This entity could be a corporation or a limited liability company (LLC). After registering with your state for that status, your business will require a tax identification number. Apply on the IRS's website.
You can use that identification number to create a bank account, apply for a loan, and pay your taxes for the new business you've started.
Commercial roofing services can put your employees in danger, so you and they will need more licenses and general liability insurance.
You should talk to a roofing attorney or mentor if you run your business in a certain area.
Open a bank account for your business
Opening a bank account is necessary to start a roofing business plan.
Keeping your roofing business money separate from your personal accounts makes filing your taxes and monitoring your company's income much simpler. Even if you don't run your roofing business as a sole proprietor right now, you should think about it in the long run.
The procedure for opening a bank account for a business is comparable to that for opening a personal account.
Most banks have accounts just for businesses, so if you want to know more, you should ask your favorite bank about the rates and features they offer. It's smart to think about the options your bank gives you and choose the right plan.
Consider the services offered by your bank and choose a plan accordingly. You can open a bank account with your EIN and other legal documents after choosing a bank and getting the necessary paperwork.
Get the right equipment
To start your own roofing business, the next step is to buy tools and equipment. You'll need the following items:
- A step ladder
- Hard hats and safety equipment
- Cleaning equipment (rake, broom, etc.)
- A tarpaulin
- Measurement tools
- Hammers, nail guns, and gun tuckers
- Air compressor
- Cutting instruments and tools (saws, blades, utility knives)
- Pry bars and tools for removing shingles
It is important to keep in mind that your choice of roofing equipment will depend on the type of roofing business you intend to establish.
Use online applications
Remember that when you start a roofing business, the financial side is the most important, such as paying suppliers or dealing with late payments.
With Blinksale, a cloud-based estimating system for roofing businesses, you can give your business a solution that includes a professional roofing invoice template and makes estimating and invoicing so much easier. With the help of this online system, your business looks complete, giving you an advantage over your competitors.
With Blinksale, you don't have to worry about where your money is invested or spent because the system will give you a detailed report on the cash coming into and going out of your business. Plus, you can use it anywhere in the world as long as you have access to the internet.
During a 14-day free trial, you can try out the online billing and estimating system and use its modern features.
Invest in insurance
Entrepreneurs frequently disregard the need for business insurance, which can be critical to your success as a business owner. Your business may suffer from a number of unforeseen events, but insurance shields you from those occurrences.
Here are some types of insurance to consider:
General liability insurance is a comprehensive insurance policy that protects nearly every area of a business that needs protection. This type of insurance is the best option for a roofing business. Personal injury and property damage are also covered.
Business property insurance protects your supplies and equipment.
Insurance against equipment breakdown: If certain equipment breaks down due to mechanical problems, the roofing business's insurance will cover the cost of replacement or repair work.
Worker's compensation: This insurance ensures that injured employees are reimbursed.
Property: Protects the space where you run your cart, storefront, or office.
Commercial auto: This policy protects company vehicles.
Professional liability insurance protects against claims made by clients alleging that they have experienced damage due to errors or omissions in your work.
Hire the Right and Skillful Roofers
You probably won't be able to complete the roof work by yourself, and this method is not only risky but also impractical. So, you need a team you can count on.
It's important to work with roofers who have a good reputation. This job requires a lot of heavy lifting and climbing, as well as hard work, so you need to be physically fit. You need to hire a person who has reroofing experience or who has worked in construction and is willing to learn how to perform roof repairs.
As your roofing business grows, you may need to hire people to help you with your accounting and finances, scheduling and booking, and marketing.
All of these professions should require honesty, dependability, attention to detail, and the capacity to work under pressure.
Promote your business
When everything is set up, the best way to get roofing leads is through marketing. You already know who you want to target, so you need a strategy to reach them.
Search engine marketing (SEM) and local search engine optimization (SEO) are great ways to grow your business. SEO will enable you to rank organically for queries like "roofers near me." With SEO, your content is optimized so that it ranks higher in search engine results naturally, while SEM focuses on paid ads to get your site to the top.
The best way to reach your target audience is to form strategic partnerships with other businesses whose customers are the same as yours.
You could also send people out to canvass and knock on doors. In short, you will give them flyers and tell them to look for possible customers. Putting yourself in direct contact with possible clients can be very helpful, but not all potential clients may like it.
How much does it cost to start a roofing business?
A roofing business will need different amounts of money depending on how it will be run, like if it has subcontractors or employees. But it is possible to start with low costs, and business owners often recommend this for roofing businesses.
Spend some money on your equipment first before you buy more. The hiring process is no different.
Don't just sit there and take up space. Make sure that the people you hire are properly trained. When a business is just starting out, the owner usually spends a lot of money on marketing and advertising. Prior to getting referrals, you will need to invest a lot in advertising. Experts say to start small and close to home. Before you jump in, you should do your research and try it out.
Here is a list of what it will cost to start a roofing business.
- Commercial space leasing
- A standard set of tools
- Workforce
- Insurance
- Permits and licences
Conclusion
Starting a roofing business can be a good way to make money. As a new owner of a roofing business, you must take the steps above to get your business up and running. So, you can use these steps to get your roofing business up and running in an easy and smooth way.
